Home Builders Insurance for Home Contractors

February 8, 2024


At their core, homebuilders are the kind of people that make dreams come true. They can turn an empty plot into something you have thought about and worked towards for so many years. From creating the plans to handing over the keys to their client’s new home, there is a lot that comes with the process of building a home. Unfortunately, that also means that homebuilders may face a lot of risks, whether that’s property damage because of heavy machinery, exposure to the elements, or liability claims that their work didn’t meet expectations.

Insurers can’t build homes, but they can designate insurance packages specifically for the people that do. Homebuilder’s insurance is an insurance package for builders who work with specialized machinery, create intricate floorplans, get their hands dirty, and make customers’ dream homes a reality! Let’s get into just how homebuilder’s insurance can protect against risks – during construction and after.

Special Considerations for Home Builders & Insurance

As with any business in really any field, there are different kinds of home builders and different scales of business. You could work on new builds in small communities or more complex commercial builds in government space. There are special considerations for homebuilders and insurance.


  • Does your business have a warehouse? An office? Does it rent or own its commercial space?
  • Does your business offer show homes and home tours?
  • Does your business outsource any of its work?
  • Does your business own commercial automobiles, or do any of your employees use their personal vehicles for business purposes?
  • Does your business ship or transport a lot of materials to the job site?

All of these considerations are things you may want to discuss with your insurance provider when getting your commercial insurance.

Are builder’s risk insurance and homebuilder’s insurance the same?

Is homebuilder’s insurance the same as builder’s risk insurance? Builder’s risk and homebuilder’s insurance contain numerous similarities, but builder’s risk insurance only covers the property in question during construction. It can cover new builds, repair jobs, or even renovations.

Homebuilder’s insurance is for home building contractors – and, more specifically, for their business. It outlasts the course of construction and goes on to protect the homebuilding contractor in-between jobs, including protection their commercial automobiles, their warehouses, their offices, and so on.

Homebuilder’s insurance policies may even contain a builder’s risk component, which can be activated while a build is under way. However, this depends on the policy, and you would need to ask your insurer if this is an option or if you will need to acquire separate builder’s risk for your next project.

What Does Homebuilder’s Insurance Cover?

Construction costs have risen quite a bit over the last few years, in part due to the rising cost of materials. Creating a long-lasting business that generates revenue while keeping its operational costs down can be extremely difficult, not to mention all the various risks your business may be left exposed to. Without coverage, you might not be able to recoup from some potentially devastating financial disasters. Moreover, with some projects, you could be obligated to purchase insurance.

Homebuilder’s insurance is an insurance package for numerous kinds of coverage, and may include any of the following types of coverage:

Property Coverage Insurance

Severe weather events, like flooding (which has resulted in many flood-prone homes in Canada becoming uninsurable) and fire can severely damage your warehouses, inventory, office contents, and stock. Property coverage insurance can protect your physical assets from physical risks.

Commercial General Liability Insurance

Trips and falls, property damage, injuries on building sites, etc., are all cause for potential liability claims made against your business. This coverage protects your business against the possibly high cost of legal claims and defense costs you might see in a court of law.

Commercial Vehicle Insurance

For any homebuilding businesses that use vehicles, commercial auto insurance is critical. Not only is it required to keep your business legally compliant with Ontario’s automobile rules, but it also saves your business the financial headache of having to repair or even replace company vans, trucks, and cars.

Equipment and Tools Insurance

Homebuilding businesses likely may use of a lot of different tools in their day-to-day business. Equipment and tools insurance can cover their equipment and machinery from unexpected losses.

Risk Management for Homebuilders Includes Comprehensive Insurance: Get Covered with Excalibur

For homebuilders, physical risks are always a possibility – but what homebuilders may need to be most concerned about are situations of liability. It can happen if you’re working on a new build and cause major damage to a neighbouring property, or if someone gets injured while passing by your worksite, etc. Having the correct home builder’s insurance policy can go a long way to mitigating your potential risks and can help get you back to normal as quickly as possible.

If you are ready to begin discussing your needs, Excalibur Insurance is happy to help. We are here to review your existing policies, discuss your homebuilding operations, and find you the best, most comprehensive insurance for your needs. Give us a call today or get a free quote to begin.